What is a coinsurance cap?

A coinsurance cap is a limit placed on the amount of coinsurance, or cost-sharing, that a health insurance policyholder must pay for medical services in California. Coinsurance is the percentage of the cost of a healthcare service that a policyholder must pay and is usually calculated after the deductible has been paid. A coinsurance cap sets a maximum amount that a policyholder can be asked to pay out-of-pocket for coinsurance. For example, if a policyholder has a coinsurance cap of $500, they can only be charged up to $500 for coinsurance, regardless of the cost of the services received. Coinsurance caps help decrease the out-of-pocket costs for policyholders who require significant amounts of care and can help to ensure that health insurance premiums remain affordable.

Related FAQs

What is a healthcare provider network?
What is a self-funded plan?
How does health insurance work?
What is a policyholder?
What are the benefits of a health savings account?
How can I reduce my health insurance costs?
What are some of the benefits of group health insurance?
What is a step therapy requirement?
What is a copayment?
What is a health insurance deductible?

What is a coinsurance cap?

Related FAQs

Related Blog Posts